Brazil’s Long-Range Plan Calls for Doubling Fluvial Transportation by 2025

    Boat in the São Francisco river

    Boat in the São Francisco river Although they are the cheapest means for transporting goods, waterways only represent 14% of the Brazilian transport matrix, which comprises 62% of roads and 24% of railways. The National Transport Logistics Plan aims to increase the share of waterways in the transport matrix up to 29% by 2025.

    One of the plan’s priorities is to conclude, up until 2014, part of the improvement works at the Paraná-Tietê waterway, at an estimated cost of 3.7 billion Brazilian reais (US$ 2 billion). Part of the funds for carrying out these works will come from the second phase of the Growth Acceleration Program (PAC 2) of the federal government, which was announced last March 29.

    The PAC 2 provides for 2.7 billion reais (US$ 1.4 billion) to be invested in 48 works in waterways, of which 34 will be terminals at waterways, seven will be waterway structuring, and seven will be feasibility studies.

    The works scheduled for the Paraná-Tietê waterway include the broadening of bridge spans, dredging, rock removal, building of cargo terminals, and of locks.

    The objective, upon increasing the ease of sailing and the speed at the Paraná-Tietê waterway, is to raise its transport capacity from its current 5 million tons per year to 30 million tons. The waterway has 2,400 kilometers (1,500 miles) of extension, from the state of Goiás to the state of São Paulo, and passes through five states.

    No Taxes

    Farmers and breeders who export their production can already stop paying federal taxes on inputs such as feed and fertilizers. The Federal Revenue and the Foreign Trade Secretariat of the Brazilian Ministry of Development, Industry and Foreign Trade have signed an act establishing the integrated drawback.

    The drawback is a regime that suspends the payment of federal taxes on inputs destined for the manufacturing of goods geared towards exports only. The regime has existed since the 1960s, but used to be applied to imported inputs only. In 2008, the government extended the option to domestic inputs, thus establishing the Brazilian drawback.

    Short News

    * A survey conducted by the Bank of Brazil on the Brazilian naval industry reveals that in the next ten years, the sector should receive investment of 62 billion reais (US$ 34 billion) in machinery and equipment.

    * The Cooperative Development Program for Adding Value to Agricultural Production (Prodecoop) received 1.2 billion reais (US$ 658 million) in investment from July 2009 to February 2010 (representing growth of 178% over the previous crop).

    Anba

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